Tether & Bitfinex Lawsuit Thrown Out – You Won’t Believe Why!

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In a significant win for both Tether and Bitfinex, Chief Judge Laura Taylor Swain of the U.S. District Court for the Southern District Of New York has put an end to the longstanding class action lawsuit against the two entities.

A Short-lived Legal Affair?

While class action lawsuits can drag on for years, this particular case was stopped in its tracks early on. The lawsuit, brought on by plaintiffs Matthew Anderson and Shawn Dolifka, claimed that Tether had falsely advertised its USDT stablecoin as being backed one-to-one by the U.S. dollar. However, the court wasn’t convinced.

In her succinct 6-page decision, Chief Judge Swain highlighted that the plaintiffs failed to provide any plausible allegations of injury. Specifically, there were no concrete facts indicating that the value of USDT had been adversely affected.

Reactions from the Crypto Front

The verdict unsurprisingly sparked a wave of reactions online. Tether and Bitfinex’s CTO, Paolo Ardoino, took to X (previously known as Twitter) to express his relief and satisfaction, “It’s a good Friday.” Stuart Hoegner, a prominent Bitcoin lawyer, also chimed in, breaking down the court’s decision in a series of tweets and applauding the team’s effort.

Breaking Down the Court’s Reasoning

Some essential excerpts from the Memorandum Order were:

1. Plaintiffs haven’t provided sufficient facts to prove any tangible injury.
2. There’s no mention of the buying price of USDT for plaintiffs, nor its selling price.
3. Even if there were misrepresentations from the defendants’ side, there’s no evidence to show a loss in USDT value.
4. The stablecoin’s current market data even suggests that USDT still maintains its ‘pegged’ value at $1.00.
5. Without a plausible injury, the plaintiffs have no standing, leading to the case’s dismissal.

Tether’s Continuing Influence

The victory comes at an opportune time for Tether, which recently disclosed an impressive net profit of $850 million in Q2. Recognized as the eleventh-largest holder of bitcoin globally, this legal win might solidify its position in the market further.